Transportation

DETROIT (Reuters) - United Auto Workers President Bob King said on Monday that he was "upbeat" about reaching a contract deal with U.S. automakers that would keep them competitive against Asian and European rivals.

WASHINGTON (Reuters) - U.S. retail gasoline prices fell 7 cents over the last week to $3.60 a gallon as of Monday, the second consecutive drop this month, the U.S. Energy Department said.

NEW YORK (Reuters) -Southwest Airlines' pilots union has reached an agreement in principal with the pilots union for AirTran Airways, the low-cost airline it bought in May.

By Scott Malone

A legendary racing vehicle is likely to break the all-time world auction record for a vehicle this weekend at an auction in California. 

By Benjamin Lim and Don Durfee

By Clare Baldwin

BEIJING (Reuters) - China's economic planning agency on Monday published a new list of industries that it would encourage, restrict or ban, a blueprint that could have a far-reaching impact on investment activity China over the coming years.

Toyota is likely to close its North American factories due to parts shortages caused by the earthquake in Japan.

Southwest Airlines canceled 70 flights as it continued to inspect Boeing 737 planes following the emergency landing on Friday.

The Chinese government has deemed foreign investment in the construction and management of villas prohibitied.

Sony is considering closing some of its operations in Japan for two weeks during the summer to save energy as Japan copes with a reduced power generation capacity.

WASHINGTON (Reuters) - Europe is renewing its push for the United States to ease restrictions on foreign ownership of airlines, arguing that access to a steady stream of capital remains a top industry concern.

By Scott Malone and Nick Zieminski

Airlines took a hit from skyrocketing fuel prices but were able to offset some of the losses by charging higher fares. 

The director of the FAA's Air Traffic Organization steps down over a controversy involving sleeping air traffic controllers.

FRANKFURT (Reuters) - German carmaker Volkswagen formally launched its bid for MAN on Tuesday in a move toward creating Europe's biggest truckmaker.

WASHINGTON (Reuters) - Gasoline fell to its lowest level in seven weeks and diesel fuel dropped below $4 a gallon for the first time in two months, the Energy Department said on Tuesday.

NEW YORK (Reuters) - U.S. Sen. Charles Schumer on Monday called for legislation that would prohibit the rental of cars that had been recalled for safety reasons.

By Andrea Shalal-Esa